Tour Solad, Paris, France

Flag-France

Investment Date
Q1 2016

Exit Date
Q1 2019
(Fully Realised)

Asset type
Office

Revcap strategy
Active Asset Management

Revcap Fund
KHCP III

Investment Type
Joint Venture Equity

Background and Opportunity

  • 14 storey office tower in Puteaux, adjacent to La Défense, Paris’ principal business district acquired with a vacancy rate of 30%
  • The 12,663m² property was held in a dysfunctional co-ownership structure with multiple owners meaning little had been done to enhance or improve the overall asset
  • The JV’s business plan is to renovate the vacant space, façade and public areas to facilitate lease up and to return the property towards market rents

Transaction Progress

  • 100% ownership simultaneously acquired from three different sellers
  • Lease up has started at levels materially ahead of underwriting
  • Options being considered for refurbishment
  • Two vacant floors were stripped back and renovated

Current Status

  • Asset sold to our JV partner at a level materially above underwriting, generating a post tax IRR of 35% and a 2.7x multiple

SIMILAR INVESTMENTS

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